Posted by mercurywealthmgt mercurywealthmgt on Tuesday, October 23, 2012

To be out of work is tough these days. Expenses and other house necessities need to be paid but there is no salary to pay for it. Income protection insurance can offer the insurance policy holder that has been unemployed due to illness or accident with whether weekly or monthly set amount of money. This is also acknowledged as salary continuance coverage. The policyholder can receive up to 75% of the annual earnings. This is usually provided after 30 days of being out of job. The customer will continue to get until he or she resumes work or until he reach the retirement age of 65.

In the event of unexpected situations like joblessness because of illness or accidents, this kind of bond will be beneficial and can provide security. The monthly or weekly benefit payments are free of income taxes. The organization that provides the insurance do not have the authority to cancel or even refuse renewal of policy if the insured person still pays the premiums. It may provide a waiver of premium option where in the policy premiums are not needed if the client is paying the benefits and the policy include is normal as it is. Benefits such as for death, cosmetic or any other surgeries and transplants are provided free of charge by the IPI.

An individual can receive an amount between 50% and 75% of their gross salary through income protection salary. This is often purchased to cover specific cost such as loans and other basic expenses. It can be readily available for a fixed term of 12 and 24 months or will go higher as five to ten years. Payments which are known as an income is considered to be able to know how much will be needed for the insurance.

Variety of factors can affect the cost of the coverage and can vary from insurer to insurer. There is the duration of protection, the substitute income cost, the waiting period before payment begins, and other additional options that are bought. The client’s age, sex, occupation, health history and the retirement age can be some of the factors that may modify the cost.

There are rebates for other types of payments which are paid out with an IPI. These could include supplemental sick pay or wages paid by the employer and the earnings from self employment and pension payments.

Know very well what your insurance covers. Request your financial planners about your coverage so you will be aware. IPI like every other insurance plan have limitations and exclusions that are not covered. Being pregnant and having a baby , as well as self- inflicted injuries and war are example of this exclusions.